Milligan West

Recent deep penetrating geophysical survey has identified a strong to intense IP chargeability anomaly and resistivity high associated with Milligan age intrusive rocks and anomalous gold values from a prior shallow drill hole. The new target has the size and intensity to potentially host a significant sulphide system at a moderate depth on trend from one of BC's largest Au-Cu Mines.

Ownership

Serengeti Resources Inc. 56.3%, Fjordland Exploration Inc. 43.7%

Plans moving forward

A recent deep penetrating IP survey along the eastern margin of the property has outlined a drill ready target on the eastern flank of the property which borders the Mt Milligan Mine Deposit. A follow up drilling program is planned for 2017 to drill test this deep target to 400-500m depth.

Several IP and magnetic features also remain untested elsewhere on the property as well as encouraging results at the bottom of a historic drill hole.

Location and Infrastructure

Access to the Milligan West property is via the all-weather gravel North Road 80km north of from Fort St James, which accesses an extensive network of logging roads in north-central BC. A network of logging roads accesses the southern half of the Milligan West claim and from the east on forestry access roads to the Mount Milligan mine site. From Mount Milligan, a trail travels westward to Heidi Lake and to the edge of the Milligan South Property limits. The northern portion of the property is crossed by old trails that have been decommissioned. Other areas are accessible by helicopter and/or construction of trails off existing roads. As of 2016, a large cut block has opened up much of the western Heidi Lake area of the property.

History

Exploration for porphyry Cu and Cu-Mo was conducted in the Nation Lakes area during the 1960s and 1970s. Government airborne geophysical surveys were completed in the 1960s. In the 1980s exploration focused on structurally-controlled precious metal deposits near the Pinchi Fault, located west of the property. The discovery and definition of the Mt. Milligan deposit by Continental Gold Corp. and Placer Dome led to a significant amount of base and precious metal exploration in the surrounding area during the late 1980's and early 1990's.

In 2005, AMARC covered portions of the property with wide spaced, 50m dipole IP lines. This survey outlined a +20km long system of chargeability and magnetic anomalies. This survey had a shallow depth penetration (~150m max) and the anomalies were open, increasing in strength with depth.

Serengeti Resources and Fjordland formed a Joint Venture in 2007 and carried out IP surveys, soil sampling and a small drilling program. The property sat largely dormant since 2009 with the exception of some geochemical sampling in the Heidi Lake West area. In 2016, a deep penetrating IP survey was completed in the Heidi Lake West area.

Property Geology

The Milligan West property lies in the central part of the Upper Triassic to Lower Jurassic Quesnellia Terrane. The term Quesnel Trough is commonly applied to this belt, which is comprised of a belt of Lower Mesozoic volcanic rocks and intrusions that lies between highly deformed Proterozoic and Paleozoic strata to the east, and deformed Upper Paleozoic strata to the west. The Quesnel Trough is the host of numerous alkalic and calc-alkalic porphyry copper-gold deposits within British Columbia.

The Milligan property encompasses two large regional-scale aeromagnetic highs that are generally trending in a northwesterly direction. One linear trend passes through the East Area, northwesterly to the Nation River. A larger and stronger magnetic anomaly extends from the south of the property through the Main Area and extends through the Northwest Area, westerly to Witch Lake. A circular moderate magnetic anomaly, projecting southwesterly to the West Area, appears related to the Main-Northwest anomaly.

Rocks found in outcropping (to the west of the property), and diamond drilling form the basis of the property geology. Outcrops exposed along the northeast flowing tributary of Wittsichica Creek are composed of feldspar porphyries and iron-stained Takla Group fragmental volcanics. Exposures in the higher areas near the southern property boundary have been mapped as augite porphyry flows, lapilli tuffs and epiclastics sediments of the Takla Group Witch Lake Formation. Dominant faulting directions were interpreted to be northwest, southeast and northeast-southwest with a lesser east-west component. Drilling in the Main area intersected porphyritic plagioclase-augite andesitic breccias, minor tuffs, and massive flows, intruded by microgabbro dykes. Strong propylitic alteration is dominant with minor phyllic and potassic evident.

Two shallow holes drilled at the same time as the earlier IP survey in the Heidi West area encountered sedimentary rocks, cut in one of the holes by Milligan age, propylitically-altered monzodioritic sills with increasing pyrite to the bottom of the hole and one interval assaying 0.15 g/t Au over 9 meters.

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